PowerCorp to fund 15MW solar project with ₦50b green bond

FMDQ Securities Exchange has admitted the listing of the NSP-SPV PowerCorp Plc ₦6.33 billion fixed rate series 2 senior unsecured green bonds under the ₦50.00 billion-bond issuance programme to its platform.

According to the company, the proceeds from this issuance will be used to fund the development of the 15MW Pre-Phase 1 Solar Project and the transmission evacuation infrastructure for NSP PowerCorp Plc’s solar project, to further fuel the development of power in Nigeria.

Executive Vice Chairman/Chief Executive Officer, North South Power Company Limited, Olubunmi Peters said the transaction reinforces the company’s belief and commitment towards promoting clean energy generation in Nigeria.

He pointed out that the issuance also demonstrates growing investor confidence in the business, management team, and long-term strategy.

Peters assured that the company was poised to unlocking opportunities within the power and infrastructure industry and promoting a sustainable energy solution for Nigeria.

Also, the Chief Executive Officer, Stanbic IBTC Capital Limited (the sponsor of the bond on the exchange), Funso Akere said the bank is delighted to have advised on the issuance which reflects the depth and diversity of the Nigerian Debt Capital Market (DCM).

He said the promotion of social equity, economic viability and environmental protection remains part of the bank’s core strategy and values, as members of Standard Bank Group.

“The success of the transaction demonstrates investors’ confidence in North South Power, its sector, people, and strategic direction.:

The Nigerian Green Bond Market Development Programme, which provided technical support for the NSP-SPV PowerCorp Plc Series 2 Green bond, by facilitating crucial engagements between the parties to the transaction and selecting technical consultants for the verification of the Green bond, was launched in 2018.

The aim was to create awareness and drive education required to integrate the principles of green financing into the Nigerian DCM, as a partnership between FMDQ Group, CBI and FSD Africa.

Chief Executive Officer, FMDQ Group, Mr. Bola Onadele said the exchange is proud to have supported the NSP-SPV PowerCorp Plc series 2 Green bond through the Nigerian Green bond market development programme.

He said FMDQ, as the local partner to the programme, provided support by selecting Consultants for the verification and credit rating assessment of the Green Bond, which was executed within a remarkable timeline of estimated two weeks.

He pointed out that the transaction further proves that efforts toward developing a vibrant green bond market are gaining traction as more corporates and sub-nationals are beginning to explore green debt financing opportunities to raise capital towards pipelines of eligible projects.

“Once again, we congratulate the Board and Management of North South Power and reiterate our commitment to work with our stakeholders to develop the Nigerian green bond market”.